H-P Blames $8.8 Billion Charge on Bad DealHewlett-Packard surprised investors when it claimed it had been duped into overpaying for one of its largest acquisitions, a U.K. software maker, resulting in an $8.8 billion charge. 9:31 PM

In addition to the audit, Deloitte also did some work on acquisition accounting and due diligence for Autonomy, though the company generally avoided awarding general consulting work to Deloitte, according to Autonomy's 2010 annual report. Deloitte also advised Autonomy on remuneration for the company's executive directors, providing "market data, advice on market practice and governance, performance analysis and advice on plan design and performance measures," according to the report.The allegations over Autonomy are only the latest time Deloitte's work has been in the news lately.In August, New York banking regulators alleged that Deloitte had aided U.K. bankStandard CharteredSTAN.LN -0.24% PLC in handling transactions for Iranian customers, which violated U.S. anti-money-laundering laws. Benjamin Lawsky, New York's superintendent of financial services, alleged Deloitte had doctored a report to regulators and revealed confidential information about other clients of the firm. No charges were brought against Deloitte, and the firm denied any wrongdoing.In addition, last fall U.S. audit regulators rebuked Deloitte's American firm by unsealing previously confidential criticisms of the firm's quality control, in which the regulators said Deloitte's auditors weren't skeptical enough. The move signified that the regulators felt Deloitte hadn't done enough to address the criticisms, and was the first of its kind against a Big Four accounting firm.

In addition, last fall U.S. audit regulators rebuked Deloitte's American firm by unsealing previously confidential criticisms of the firm's quality control, in which the regulators said Deloitte's auditors weren't skeptical enough. The move signified that the regulators felt Deloitte hadn't done enough to address the criticisms, and was the first of its kind against a Big Four accounting firm.Deloitte's Chinese affiliate has been embroiled in a dispute with the SEC over the commission's demand for documents about Deloitte audit clients which the commission is investigating. Deloitte has refused to hand over the documents out of concern that China's government could penalize it under strict Chinese state-secrecy laws. The SEC is trying to work out a deal with Chinese regulators and has put a lawsuit against Deloitte over the matter on hold.In June, Deloitte agreed to pay $19.9 million to settle shareholder litigation alleging that the firm misled investors about the health of Bear Stearns Cos., a Deloitte audit client, before the investment bank's near collapse and fire sale to J.P. Morgan ChaseJPM +0.27% & Co. in 2008. Deloitte denied wrongdoing and said at the time that it agreed to the settlement to avoid the cost and uncertainty of further litigation.Regulators have found a rising rate of deficiencies in Deloitte's U.S. audits recently, as they have at the other Big Four firms. Also, a peer review of Deloitte this summer, conducted by Ernst & Young under the auspices of the American Institute of Certified Public Accountants, gave Deloitte a "pass with deficiency" grade instead of a regular pass—the first that is happened with a Big Four firm.—Jean Eaglesham contributed to this article

Former Autonomy Corp. Chief Executive Officer Mike Lynch said the claim by Hewlett Packard Co. (HPQ) that more than $200 million in improperly recorded revenue led to a $5 billion writedown doesn’t make sense.“After being ambushed by all this yesterday, I’ve had a chance to look at some of the things that they’re saying -- it just doesn’t add up,” Lynch said in an interview today. “HP is looking for scapegoats, and I’m afraid I’m not going to be one of those.”Hewlett-Packard recorded an $8.8 billion writedown yesterday, and said more than $5 billion stemmed from accounting irregularities at Autonomy, which it bought last year. More than $200 million of Autonomy’s revenue had been recorded improperly over a two-year period starting in 2009, according to Hewlett- Packard’s general counsel. The company said it has notified regulators in the U.K. and the U.S. and would consider civil litigation.Lynch, who has denied allegations that his team mishandled the financial reports, said that the $200 million couldn’t have led to a $5 billion decline in Autonomy’s value and distorted profit and sales. The 47-year-old, who left the combined company in May, said that he has no plans to hire a lawyer and hasn’t been in contact with Hewlett-Packard beyond reading the statement yesterday.“The first thing is to find out what they’re saying. Let’s find out what they’re saying and who they’re talking about,” he said. “So far, they don’t actually define it.”../...

BUENOS AIRES--A U.S. federal court on Wednesday ordered swift implementation of a ruling that bars Argentina from paying investors who swapped their holdings of defaulted sovereign bonds for new securities unless it also pays investors who are suing for full repayment.

New York district judge Thomas Griesa said the decision should be put into effect as soon as possible following recent comments by Argentine President Cristina Kirchner and her ministers that Argentina won't pay so-called holdout creditors.

"The less time Argentina is given to devise means for evasion, the more assurance there is against such evasion," he wrote.